The South Korean tech leader Kakao is actively preparing to launch its own stablecoin, which will be backed by the Korean won (KRW) and will operate on the Kaia blockchain. In early August, Kaia registered four trademarks related to the national currency: “KRWGlobal,” “KRWGL,” “KRWKaia,” and “KaKRW.”
This is reported by Business • Media
Kakao’s Strategy and the Role of the Stablecoin in the Financial Ecosystem
Kaia is a public blockchain that emerged from the merger of the Klaytn and Finschia platforms. The network is managed by Kakao and Kakao Pay, who view the launch of the stablecoin as a bridge between other fiat-backed tokens, including the US dollar and the Japanese yen. According to Dr. Sangmin So, the head of the Kaia DLT Foundation, over 49 million users of the Kakao ecosystem will be able to access DeFi protocols directly through mobile applications, which will promote the development of decentralized finance projects in the country.
At the same time, the final launch of the token depends on legislative decisions that are still under discussion. Since late June 2025, two alternative bills regarding the regulation of stablecoins have been considered in the South Korean parliament. The main topic of debate remains the issue of interest accrual on deposits in stablecoins, although both bills support full reserve backing and expanded powers for regulators.
Regulatory Challenges and Implementation Prospects
The Bank of Korea proposes issuing stablecoins through banks and is also exploring the possibility of creating deposit tokens on public blockchains. However, Korean stablecoins currently face a number of restrictions, particularly regarding use cases compared to their dollar counterparts.
“More research is needed to identify and develop practical applications,” said senior analyst Min Jong from Presto.
He also emphasized that strict currency restrictions complicate access to the global cross-border payment market. According to the expert, the true value of stablecoins lies in reducing friction during international transfers, and these aspects must be seriously considered.
Despite Kakao’s services reaching over 95% of the South Korean population, the final launch of the stablecoin will only be possible after clear rules regarding licensing, reserves, interest accrual, and the role of banks in this process are established.
According to the position of the Kaia DLT Foundation:
“KRW stablecoins do not just mean the issuance of digital currency, but also symbolize the legalization of businesses operating on the basis of digital assets in Korea,” added So.
It is worth noting that recently, foreign tourists in South Korea gained the ability to withdraw cash in USDT through crypto ATMs thanks to the collaboration between DaWinKS and the Kaia DLT Foundation.